A New Economic Model

The United States government will be borrowing nearly 50 cents out of every dollar it intends to spend, already exploding the record on federal deficit over $1.8 trillion additional dollars, in the upcoming fiscal year.

Based on reports released Monday, federal government plans on adding upwards of $89 billion to to the 2009 red ink which would bring it to more than four times the amount last year. The U.S. government further plans on handing out billions more for those who lost their jobs while imposing lesser amount of taxes on people who earned fewer dollars this year.

Economic experts warn though, if the rescue package should not kick start the economy any time soon, the U.S. and western economies will be faced with dire consequences.  Leading economist, Paul Krugman, warned the U.S. administration over prolongation of the economic crisis into the next decade. He said the rescue package is too small to have a lasting effect on the depth of the crisis.

Moreover, on the subject of the health of U.S. economy, other economic experts are not as optimistic as Paul Krugman. The majority of leading economists believe the end of American century has begun. The post WWII economic expansions led by Allied Axis is no longer workable with economic realities of today.

In a best case scenario, economists suggest an economic system based on European and particularly Swedish models should replace the Wall Street Model.

Masood Kazerani is a freelance journalist/ reporter specializing in current world affairs, travel and tourism. He writes for: http://www.hamsayeh.net

Masood Kazerani is a freelance journalist/ reporter specializing in current world affairs, travel and tourism. He also writes on various subjects about his current country of residence – Iran. He can be reached by email: maskazer@hotmail.com or through a news website he is currently contributing to: http://www.hamsayeh.net

Article Source:http://www.articlesbase.com/politics-articles/a-new-economic-model-1394206.html

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